TO: | Honorable Geanie Morrison, Chair, House Committee on Higher Education |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB1434 by Rose (Relating to exempting books purchased by university and college students from the sales tax for a limited period.), As Introduced |
The following fiscal implications assume an effective date of July 1, 2007.
Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from Cities |
Probable Revenue Gain/(Loss) from Transit Authorities |
Probable Revenue Gain/(Loss) from Counties/SPDs |
---|---|---|---|---|
2007 | ($4,121,000) | $0 | $0 | $0 |
2008 | ($32,302,000) | ($6,203,000) | ($2,128,000) | ($800,000) |
2009 | ($34,619,000) | ($6,648,000) | ($2,281,000) | ($858,000) |
2010 | ($37,101,000) | ($7,124,000) | ($2,444,000) | ($919,000) |
2011 | ($39,761,000) | ($7,635,000) | ($2,619,000) | ($985,000) |
2012 | ($40,612,000) | ($8,182,000) | ($2,807,000) | ($1,056,000) |
The following fiscal implications assume an effective date of October 1, 2007.
Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from Cities |
Probable Revenue Gain/(Loss) from Transit Authorities |
Probable Revenue Gain/(Loss) from County/SPDs |
---|---|---|---|---|
2008 | ($20,568,000) | ($3,101,000) | ($1,064,000) | ($400,000) |
2009 | ($34,619,000) | ($6,648,000) | ($2,281,000) | ($858,000) |
2010 | ($37,101,000) | ($7,124,000) | ($2,444,000) | ($919,000) |
2011 | ($39,761,000) | ($7,635,000) | ($2,619,000) | ($985,000) |
2012 | ($40,612,000) | ($8,182,000) | ($2,807,000) | ($1,056,000) |
The bill would amend Chapter 151 of the Tax Code to exempt books purchased by a student enrolled at an institution of higher education from the sales tax. Under the provisions of the bill, books would be exempt if purchased during a period beginning on the first Monday in August and ending the second Sunday in September or during the month of January.
The bill would require eligibility for the exemption to be established by the presentation of a valid student identification card.
The bill would take effect July 1, 2007, if it receives two-thirds vote in each house; otherwise, it would take effect October 1, 2007.
For the purpose of this estimate, the Comptroller of Public Accounts gathered data on the sale of books in Texas from public and private sources, including Comptroller tax files. The Comptroller reported that the estimated book sales were adjusted for the exemption period and the potential effective dates; and were extrapolated through fiscal 2012. Fiscal implications on units of local government were estimated proportionally.
Local units of government would have a corresponding fiscal impact from sales tax revenues, as indicated in the above table. According to the Comptroller of Public Accounts, the fiscal implications on units of local government were estimated proportionally; and there would be no impact on local governments in fiscal 2007 as August sales tax collections remitted to the Comptroller are not allocated to the local jurisdictions until the next fiscal year.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, MN, SD, EB
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